American solar manufacturers expect the White House to indicate whether or not it plans to impose a tariff on imported solar panel materials by next week.

In August 2017, American solar panel manufacturers Suniva and SolarWorld registered an official complaint with the United States International Trade Commission, claiming that foreign solar imports hurt American companies. The trade case, which was supported by the regulatory body, alleged cheaper imports of crystalline silicon photo voltaic cells and modules, namely those from China, were uninhibited by an undue absence of trade tariffs.

Since 2012, the U.S. has imposed tariffs on Chinese solar products, including a 31% import tax, which was a specific response to Chinese export dumping -- flooding the American market with discounted goods, which pushed domestic manufacturers to the margins. That same year, a report by the Information Technology & Innovation Foundation accused China, as well as India and Brazil, of taking part in "green mercantilism," including export dumping, currency manipulation, forced technology transfer and intellectual property theft.

In 2016, China exported $14 billion of solar equipment, a 10% decline from 2015. Chinese investment in third-country exporters, however, was a factor in the decline. Suniva and SolarWorld's suggested a tariff should be levied against solar imports across the board.

Opposition from other domestic manufacturers

But other American solar manufacturers were quick to oppose the suggestion. The next week, in late August 2017, 27 manufacturers, spearheaded by Boston-based PanelClaw, published a letter to the U.S. International Trade Commission warning the tariffs would more than double the price of solar panels in the U.S.

“The solar industry is fundamentally different from both consumer products and other durable goods,” the letter read. “If someone needs to buy tires, they can only put off the decision for so long. Few homeowners, businesses or utilities need to buy solar, although millions want to buy solar.”

PanelClaw claims to represent more than 30% of the flat-roof solar racking in the country, and the 27 companies in the letter noted they represent more than 5,700 domestic manufacturing workers. Suniva and SolarWorld combine to represent less than 500.

In 2016, around 260,000 people worked in the U.S. solar industry, a 26% increase from 2015.

"Right now, solar is a pretty economic choice in almost any market in the world," Shoer said. "The only question is, 'Are the financing mechanisms available? Is the utility rate high enough? And is there some level of contractual enforcement or creditworthiness of the off-takers?’ If you can't enforce contract, then it's difficult to finance solar development."

A solar energy power plant in Zaktubi, near Ouagadougou taken on November 29, 2017. (Photo credit: LUDOVIC MARIN/AFP/Getty Images)

While lower prices generally mean more projects get underway, the effect is significant in markets where government policy doesn't support renewable energy as much as it has in the past, like in the U.S., for example.

I write about energy and environment. My work covers the Chinese economy’s massive energy sector, innovative tech companies, start-ups, research groups, sustainable enterprises, land politics, and new voices in the global conversation about China, its investments, and the en...